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‘Robbed again’: Johor Orang Asli accuse trustees of misusing RM6mil from land compensation fund

Linggiu Valley community files MACC report, claiming decades-old RM38.5mil trust meant for their families has been abused repeatedly

9:00 AM MYT

 

KUALA LUMPUR – The Orang Asli community from Linggiu Valley in Kota Tinggi, Johor has filed a complaint with the Malaysian Anti-Corruption Commission (MACC), claiming that RM6.08 million has been misused from a trust fund established 25 years ago.

If their allegations are substantiated, it would mark the second occasion that the Linggiu Valley Orang Asli have been affected by financial wrongdoing.

The first incident took place in 2000 after a Johor Bahru High Court ruling granted them RM38.5 million in compensation for the state government’s takeover of their ancestral land.the state government’s acquisition of their ancestral land.

G. Ragumaren, the lawyer representing the Orang Asli community, told Scoop that the court had originally designated several trustees to oversee the compensation funds, including a lawyer named S. Kanawagi.

Each of the 52 Orang Asli families from Linggiu Valley was expected to receive RM900 monthly from the trust.

However, S. Kanawagi and his son, Dinesh Kanawaji, who is also an attorney, were subsequently held responsible for misusing trust funds. Reports indicate that they paid their firm excessive fees totaling RM16.5 million and acquired 57 apartments.

“In 2009, we initiated legal action against S. Kanawagi and his law firm, leading to an order that appointed Ng Eng Kiat from Folks Corporate Services Sdn Bhd as the receiver and manager for the trust until the case was resolved.

“It wasn’t until 2019 that RHB Trustees took over the management of the trust.

“During this period, Folks Corporate Services was permitted to charge themselves a reasonable fee for their services,” Ragumaren explained to Scoop.

An independent audit carried out in 2019 revealed that Folks Corporate Services had paid themselves RM3.09 million in fees, which is ten times more than what was considered reasonable, according to Ragumaren.

At the same time, Folks Corporate Services also paid RM3.048 million to lawyers for legal fees and expenses.

On Tuesday, the Linggiu Valley Orang Asli community, through RHB Trustees, submitted a report to the MACC.

Additionally, in March last year, they filed a lawsuit at the Kuala Lumpur High Court against Folks Corporate Services and Ng Eng Kiat.

According to the court documents sighted by Scoop indicate that RHB Trustees is requesting the return of RM6.08 million that was paid to Folks Corporate Services and their lawyers, and they are also seeking a declaration that the defendants violated their trust obligations, among other claims.

Even though the case was filed in March of last year, the defendants still haven’t submitted their statement of defense.

“The defendants have submitted several applications to the court, which may just be strategies to postpone the proceedings.

“ The Orang Asli tribe should not have to endure this struggle. They have been involved in legal battles since the 1990s to obtain compensation for their ancestral land that was taken from them.

“Some members of the community have died without witnessing justice in this matter,” Ragumaren said. June 8, 2025

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